Arbitration Case Study

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Arbitration is an alternative to litigation between two parties in dispute. This method of dispute resolution is used by opposing parties outside a court of law. In Arbitration, both parties agree to a neutral panel, called an arbitration, who hears their dispute and decide the outcome. Arbitration uses an adversarial system much like litigation and offers a binding decision from the partly of their choice. Organizations in a Collective Agreement benefit by using arbitration instead of litigation because of the greater degree of control it give the parties, the ability for the parties appoint their own arbiter(s) and is generally a cost-effective approach compared to litigation.

Parties in collective agreements benefit from using arbitration …show more content…

Litigation between a union and its management are subject to civil law. However, getting a judgement may take upwards of two years. While there is a constitutional requirement to proceed criminal cases “within a reasonable time,” there is no such obligation for civil cases (Gallant 2). Using litigation can become costly and time consuming for both parties under the collective agreement. Arbitration may provide the opportunity to side-step prescribed procedural requirements of litigation. This method has become a useful tool for creating a binding judgement within a reasonable time and cost. The costs associated with Arbitration focus on compensating just the arbitrators and the location of wherever the parties decide to conduct the conflict resolution. The collective agreement can create a timeline for the arbitration decision to be made as well. This allows the parties to circumvent the delay experienced in litigation. These factors are important for solving grievances to reduce the amount lost productivity between the incident being grieved and the decision being made. Arbitration decisions are binding between the two parties and are enforceable by divisional courts without altering the arbitration’s decision (Government of Ontario 2016). Furthermore, arbitral awards can be binding under the Canadian Labour Code and its provincial counterparts. This binding nature of

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